1. Describe the concept and principles of marketing<br />Two definitions of Marketing<br />Marketing is a management in which companies are required to identify, anticipate and satisfy customer needs profitably. Companies are able to determine what kind of products and services are of most interest to customers and it also gives them an idea of what strategy to use to help them enhance their sales, the development of the business and communication. <br />Marketing is also a process of planning, setting prices, giving out promotions, distributing a range of ideas and goods and services to develop exchanges that will satisfy not only individuals but the organisations objectives. Overall, this definition of marketing focuses mainly on the marketing activities that are involved which is stated as “The Marketing Mix”. <br />The orientation of an organisation<br />Sales – this stage is focused more on the making of the product and then to sell it to a suitable target market. However, customers may not like what is being sold to them. As well as this, the sales orientation focuses in detail on the selling/promotion of a certain product. <br />Sales orientated organisations are targeted not only on what the customer wants and product quality but also the selling and the promotion of the product to the market. Overall, this concept involves selling the businesses current and existing products, alongside the use of promotional methods that benefits by maximising profit. <br />Production- this focuses more on the approach to the business that centres itself on the activities on producing goods more efficiently and cost effectively. At this point the price is a key factor to customers.<br />Product- the product is the main focus and not the market. A product is made so that it makes its own needs and not from the market. Businesses that introduce the product orientation are more concerned with the quality of its own product and they assume that as long the product is to a high standard, more consumers would want to purchase it.<br />Business organisations that make use of product orientation focus mainly on the quality of the product. Companies know that if the products that are on the market are of good quality and high standard. This means that customers are more likely to purchase and take advantage of it. The production of the high quality products are like responses to the needs of customers. Businesses that introduce product orientation tend to invest in product innovation to attract the correct market.<br />Marketing – this business orientation focuses and believes that success is most easily achieved from satisfying the consumer demands. On the whole, marketing orientation helps organisations to make strategic decisions based upon what the target audience and potential customers want. Companies that are market orientated tend to be more committed to valuing their customers and their needs. As well as this a market oriented businesses ensure to make good use of marketing research by developing and broadening the awareness of the product, using product innovation methods, customer benefits such as the delivery service, warranty, installation and credit availability. These are all customer advantages. <br />http://www.exforsys.com/career-center/marketing-management/marketing-orientation.html<br />Principles of Marketing <br />Identify and anticipate consumer needs- Consumers do not only buy products and services. They expect to feel good and be able to be given a solution to problems. The more you know of the customer, the better you become by anticipating their needs. Therefore, by communicating regularly businesses will have a clear awareness of certain problems and upcoming needs.<br />Keep ahead of competition- Most organisations have a competitor that competes for the same consumer in selling a product or service. Keeping ahead of competition briefly means that you make use of unique capture methods, new technology, innovate in new advertising methods. <br />Communicate effectively to target consumers – it is important that customers can communicate well with the business. They need to be able to receive a positive approach from staff and they should be approached by a polite and happy manner. As well as this they need to be given the correct information about their products and services in order for them to keep coming back.<br />Utilising new technology – when new equipment is introduced to the business it is important that staff members are trained properly so they know how to work the technology.<br />The galleries of justice keep record of customers that visit the museum by using a database. This contains a customer’s details and shows when they visited and the cost of being able to enter. This is a form of a record for the business and allows them to refer back to this useful information if need be. <br />Marketing Mix (and the Service Marketing Mix)<br />People – an essential part of an organisation is to provide appropriate staff and people. It is important to recruit the right staff and train them properly so that they are able to deliver the correct use of service as it is essential for the organisation that they obtain a good form of competitive advantage. As well as this, consumers tend to make a lot of judgments and also deliver their own personal perception of the quality of service based on the employees and how they communicate with them. It is important that staff have a good use of interpersonal skills and make good use of the knowledge that they have of the service. <br />Physical Evidence- this part of the mix enables the consumers to once again be able to make judgments on the organisation. For example if you were to walk into a restaurant you would have high expectations of it being clean, tidy and have a friendly environment. Therefore, physical evidence is an important ingredient of the marketing mix because customers are able to deliver their own perceptions based on what they think of the quality of service which does have a big impact on the businesses future service plans.<br />Promotion- this is a method that businesses use as a way to communicate with customers. It benefits as it helps the business by providing information that will assist them in making good decisions in order for them to purchase a product or service. Moreover, if the promotion is successful it is likely to increase sales, which means that advertising and further costs are spread over a wider output. However, increased promotional activities are quite often used as a sign of response to a problem e.g. competitive activity. It helps the business to develop and build up a succession. This can be extremely cost-effective. <br />As well as this they use above the line sales promotion through media such as television, cinema to promote their brands. This type of communication is considered impersonal to customers. However<br />it is different to below the line advertising because it has odd branding strategies such as direct mail and any other sources of printed media <br />Product – This is basically very straight forward as it is either the physical or tangible item that is being sold, but there are three levels of a product; the actual product, augmented product and product offering. These are the differences-: <br />The core product is not actually the tangible product but the good thing about it is that it satisfies the customer needs. This is the main purpose of offering the product or service to satisfy the need of consumers. However, the actual product is in fact the tangible product that people like to buy and it is identified by such things e.g. the colour ,branding, style and also how many are purchased.<br />Place- this specific element focuses on where the actual product is going to be sold and how the business will go about this. This also involves how the product will be delivered and what kind of distribution method will be used. <br />Price- this relates to the cost of a certain product or service. It plays an important role within the customers buying decision and so careful attention should be paid when determining the price of it. Moreover, if the price is too high for consumers, they may just decide to purchase another product that has similar features, but has a lower price than the one that was offered by another organisation. However, the price could be determined low amongst other competitors which could indicate that the product is of low quality. Therefore, businesses should price the product in a way that reflects the correct position of the product within the market.<br />Processors – This refers to the systems that are used in order to assist the organisation in delivering the service. As well as this banks automatically give out credit cards when their customer’s old one has expired <br />Limitations and constraints on the Marketing <br />The Sales of Goods ACT 1979- this piece of legislation helps buyers to compensate when purchases go wrong. For anyone that has an interest in selling goods or services they have to first understand the implications of it and they also have to be aware of the responsibilities that come under it. The Act states that whatever is going to be sold must fit its description, be of a satisfactory quality and be fit for its purpose. <br />Be of satisfactory quality – The item must be of a good standard so that people are happy with the quality of it. This means that it should have a reasonable appearance, as well as being safe to use and must be able to last for a good length of time. Customers take this all into account and expect their goods to be worth the value. <br />Fit its description – it is very important that the goods meet there required description given by the seller, this should include an accurate description on the packaging. <br />Be fit for the purpose – when the customer indicates why he/she is buying the goods it is important that it is able to be used for the required purpose. <br />The Supply of Goods and Services act 1982 –`<br />The ASA (Advertising Standards Authority) - they regulate the different types of advertisements, sales promotions and direct marketing. They do this by looking at complaints made of them and then decide whether this advertising meets with its advertising standards codes. However, if a complaint is made about an advertisement and it has nothing has been done about it; the ASA can use a range of methods to improve its decision for example if bad publicity is being generated for the advertiser it could ruin his/her reputation. <br />Pressure Groups <br />Pressure groups are people who are not satisfied with the way a business is working and put pressure on them to change their ways. However, they might disrupt the operations of the firm or try to through petitions etc. Examples of pressure groups – Greenpeace, Amnesty International etc. <br />The Data Protection Act 1998<br />This is the United Kingdom’s Act of Parliament that outlines the UK law. When a customer completes a form for an organisation they are giving out their personal information about themselves. A lot of the time businesses use this information for their own reasons. However, problems may occur when the information is incorrect or it could even be passed on to other organisations. This act protects customers from this happening. The Act makes sure that information is kept securely and confidentially and it states that individuals have a right to see what information is said about you.<br />The Law on data protection is set out to support and protect the public of personal information, data that has been held on them by other organisations. This is not to be given out to anyone without the customers consent as it is private. In addition, businesses keep full records of all their customers including their addresses, phone numbers, bank details, date of birth etc. <br />